Madhesi party holding key to government formation declared that it would stake its claim for heading the next administration, a move which may jeopardise the prospects of front-runner CPN-UML.

In a new twist to growing political uncertainty in Nepal, a Madhesi party holding key to government formation on Friday declared that it would stake its claim for heading the next administration, a move which may jeopardise the prospects of front-runner CPN-UML.

Madhesi People's Rights Forum (MPRF), the fourth largest party with 53 seats in the 601-strong Constituent Assembly, came up with two options for forming a coalition government.

"We will either form the government under our own leadership or support the CPN-UML led government from outside" but "our first priority" will be to head the next administration, Rameshwor Ray Yadav, Central Member of the party, told PTI.

According to sources, Maoists have informally assured the leaders of MPRF that they would back a government led by the Madhesi party in order to prevent Madhav Nepal of CPN-UML from becoming the next Prime Minister. The Maoists-MPRF combine has 291 seats in Parliament, just 10 short of a simple majority.

Yadav's remarks came a day after CPN-UML leader Nepal garnered signatures of 290 lawmakers for forming the new government.

The Constituent Assembly has been deadlocked for the past 11 days by the blockade imposed by Maoists after resignation of Premier Prachanda in the wake of controversy over the sacking of Army chief Gen Rukumangad Katawal.